Key Takeaways

1. Modern Mills IPO: Subscribe March 5-6;
2. Ades Reports Robust Growth, Revenue Soars 75.6%;
3. EU Fines Apple €1.8B, New MacBook Air Unveiled;

I. Market Recap

Saudi Arabia's Tadawul All Shares Index(TASI.SA) dropped 0.96% on Monday, led by Saudi Steel Pipe Co.(1320.SA) and ACWA POWER Co.(2082.SA), which witnessed a rise of 5.74% and 5.41% respectively. Seera Group Holding(1810.SA) lost the most, down by 9.91%. 

The Parallel Market Capped Index (NomuC)(NOMUC.SA) also down by 1.91%. 

After Monday’s main trading session in the USA, the S&P 500 index(SPX.US) dropped 0.12%, and the NASDAQ(IXIC.US) slipped 0.41%. This came on the back of the two indexes’ record closing highs on Friday. The Dow Jones Industrial Average(DJI.US) also slipped 0.25%. 

II. Flash Headlines

LEAP Conference Targets $11.9B in Tech Deals

Saudi Arabia's LEAP tech conference is set to secure $11.9 billion in investment deals, surpassing last year's $9 billion. Key focuses include AI and cloud infrastructure, with significant backing from the Kingdom's digital economy initiatives. Amazon Web Services plans a regional base by 2026, and Aramco's METABRAIN aims to boost industrial AI capabilities. The event also announced new ventures like the Saudi Accelerated Innovations Lab and partnerships with IBM, alongside Dell Technologies' expansion in Riyadh.

'Magnificent Seven' Fairly Valued

Goldman Sachs' Kostin highlights the Magnificent Seven of U.S. stocks are reasonably valued, below the overvaluation peak of 2021, supported by fundamentals, reducing bubble risks as investors prioritize large growth stock valuations and fundamentals.

III. Stocks To Watch

SA snapshot

Ades Reports Robust Growth, Revenue Soars 75.6%

Ades Holding Co.(2382.SA) reported a significant annual financial growth for 2023, with sales revenue increasing by 75.6% to SAR 4.33 billion, and gross profit up by 92.03%. Net profit rose by 13.57% to SAR 452 million, attributed to strategic acquisitions and operational expansions in KSA, Qatar, Kuwait, and Algeria, despite a high base effect from 2022.

Americana Plans 25M Share Buyback for Incentives

Americana Restaurants International PLC(6015.SA)'s Board of Directors, on March 4, 2024, discussed business updates, the annual report, and approved a plan to buy back 25 million shares for employee incentives, pending regulatory and shareholder approvals.

Modern Mills IPO: Subscribe March 5-6

Retail investors can subscribe to Modern Mills Company's IPO on March 5-6, 2024, at SAR 48 per share, valuing the firm at SAR 3.93 billion (USD 1.05 billion). Following a 127x oversubscription from a SAR 150 billion (USD 40 billion) institutional book-building, retail share allocation is set for March 12, with any excess subscription monies refunded by March 18. Trading on the Saudi Exchange is anticipated post-legal clearances.

Leejam Sports Unveils 8 New Centers

Leejam Sports Co.(1830.SA) (Fitness Time) announces the opening of 8 new Physiotherabia centers across Riyadh, Dammam, Khobar, Jeddah, and Yanbou, expecting financial impacts from Q1 2024.

Al Arabia Adjusts Riyadh Billboard Deal

Arabian Contracting Services Co.(4071.SA) revised its deal with Remat Al-Riyadh, transferring up to 10% of outdoor billboard project's annual income, minimum SAR 200 million, into shares for Remat. This adjusts the project's annual minimum guarantee to SAR 1.322 billion.

USA snapshot

Nvidia Hits Record High Again, H200 Coming Q2

NVIDIA Corporation(NVDA.US)'s stock rose by 3.61% on Monday, reaching a new all-time high with a market value of $2.13 trillion. Reports indicate the H200 chip is set to launch in Q2, with the H200 and B100 chips utilizing Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US)'s 4nm and 3nm processes, respectively.

EU Fines Apple €1.8B, New MacBook Air Unveiled

The EU has fined Apple Inc.(AAPL.US) €1.8 billion for abusing its dominant position in the music streaming market, marking its first antitrust penalty against the company. Meanwhile, Apple unveiled the M3 chip MacBook Air, touted as the best AI consumer laptop, set to launch on March 8 with prices starting at $1,099 in the USA. The stock down by 2.54% to $175.1 on Monday.

Tesla Stocks Plunge, Sales Dip 19%

Tesla Motors, Inc.(TSLA.US)'s stock plunged over 7% on Monday, leading to a market value loss of over $40 billion, marking its worst performance in the S&P 500 that day. February 2024 sales data showed Tesla China's wholesale figures at 60,365 units, a 19% year-on-year decline, the lowest since December 2022.

IV. Upcoming Events

Economic Calendar

Earnings Calendar

Note: All dates provided are estimates or based on company announcements, and are subject to change at any time, whether advanced or delayed.

[This newsletter is written and edited by Bruce from Sahm News Team]